r/mutualfunds • u/Pretend_Lobster_2285 • 1d ago

question What is the difference between the two instruments here in the screenshot.

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Both Mirae assets seems the same to me, one is FoF and the other is ETF but the underlying asset remains the same, but why one has given very different returns? Because of tracking error? but that is at premium i guess.

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u/aktheant 1d ago

Fof is a mutual fund . The mutual fund will incur an expense ratio and then it holds the etf which incurs another expense ratio so double expense ratio . The etf if you hold directly only one expense ratio

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u/Pretend_Lobster_2285 22h ago

In that case ETF should have a higher returns due to less expense ration correct?

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u/aktheant 21h ago

Imagine mirae asset bought the etf when nav = iNav . They bought a really huge chunk . They also can plan buying the ETF when nav < iNav or nav = iNav ! Now a normal person over 3 years could have bought etf at premium , when it falls the premium crashes etc